Why People Choose Florida
Obvious Reasons
Great weather, especially during winter months.
Financial Advantages
- No state income tax
- No state estate tax or inheritance tax (federal estate tax still applies)
- Favorable asset protection laws
Understanding tax considerations is crucial when relocating.
Florida's Asset Protection Benefits
Several assets are considered exempt by statute, meaning they may receive protection if you're sued:
- Florida homestead property
- Property owned jointly with spouse as tenants by the entireties
- IRAs and inherited IRAs
- Cash value life insurance
- Annuities
Three Snowbird Scenarios
Scenario 1: Living in Another State, Considering Florida
- Get solid estate plan in your home state first
- If you have Florida property, consult with Florida lawyer about titling
- Consider ancillary documents (power of attorney, healthcare directives) compliant with Florida law
Scenario 2: Now Domiciled in Florida with Property in Other States
- Have Florida estate plan drafted by Florida lawyer
- Consult with lawyers in other states where you have property/business interests
Scenario 3: About to Move to Florida
- Update estate plan to Florida law
- Build relationship with Florida lawyer
- Take actions to clearly demonstrate Florida domicile (not former state)
- Establish Florida homestead for property tax breaks and asset protection
Florida Homestead Benefits
- Asset protection advantages
- Property tax reduction in current year
- Cap on future increases (typically can't exceed 3% annually)
Establishing Florida Domicile
Work with a Florida lawyer to take multiple actions demonstrating Florida is your primary domicile, not your former state. This is crucial if your former state has income tax and might audit to claim you're still their resident.
If you're considering or have recently moved to Florida, there are specific issues that need proper attention. Contact our experienced team to put you and your loved ones in the best position possible.
